Kennedy's also bullish on equity sectors that fit into his"growth at a reasonable price" strategy.Before making any macroeconomic predictions, the first step to Tom Kennedy's investment process is figuring out what the market has already priced in.
At the moment, the US economy has reached a late stage of the business cycle, where high rates have deterred businesses from borrowing capital, causing corporate profits and earnings to deteriorate. The next step is to figure out what's already in an investor's portfolio. While most investors have some equity exposure, they've also raised a lot of cash in the past two years."Our highest-conviction idea is just taking cash and getting it invested in," Kennedy said, adding that his clients are the most overweight cash they've been in the last 10 years.